An Study On Relationship Between Listed Companies Executive Equity Incentive And Corporate Performance

In the current context of economic globalization especially after the financial crisis, what impacts corporate performances that comes from executive incentive and what kind of incentive combinations can arouse the power of managers have become a new series of subjects in front of the experts and scholars. As the significant human capital in a corporate and the decision-makers of all operational activities of a company, senior management staff lead and support the company’s operational activities carried out, moreover, are the upgrade of the company’s operational capabilities, which can be effective co-ordination arrangements both inside and outside the company a variety of resources to achieve the stated objectives. Therefore, choosing the empirical study on relationship between executive incentive and corporate performance from the data of the listed company has an important theoretical value and practical significance, as the matter of fact that the incentive is directly related to what kind of performance does the company achieve.In this paper, the normative and empirical research methods are used to study the relationship between executive incentives and company performance for the listed company on the basis of existing research.Firstly, according to the classified summary of the relevant literature, drawn theorists for the conclusions of the two studies are not consistent. Then, executives of listed companies, incentive and corporate performance concepts are defined. Executive incentives and company performance correlation theory are listed.Secondly, stock options, executives shareholding ratio, the exercise price, exercise period are analyzed statistically based on the characteristics of China’s listed companies equity incentive. The panel regression model analysis of462executives of listed companies is used to research the incentives and corporate performance in the stepwise linear regression test. The empirical results show that there is a significant positive correlation between the executives’stake and the exercise price and the company performance, and a negative correlation between the vesting period and corporate performance.Finally, based on the theoretical analysis and empirical analysis, we will mention countermeasures recommendations to improve company performance for the listed companies.